Finnish courts overturn three municipal manager dismissals – legal expert explains options ahead

Finnish administrative courts have overturned the dismissals of three municipal managers in recent months, leaving local governments in a legally complex position, reports Yle. The latest ruling concerned Savonlinna city manager Janne Laine, whose termination over a loss of confidence was annulled this week by the Eastern Finland Administrative Court. Similar decisions were made late last year regarding the dismissals of municipal managers in Sysmä and Luumäki.

Saanareetta Virikko, a legal researcher at the University of Eastern Finland who earned her doctorate last year on the termination of municipal managers due to loss of confidence, outlines the limited options now available to the municipalities.

Four possible paths forward

1. Reinstatement of the manager
While legally straightforward, Virikko notes that a municipal manager’s return after an overturned dismissal is rare in practice. “The city manager should return as city manager,” she states. The wrongfully dismissed official is also entitled to back pay from the date of termination. However, reinstatement after a confidence-based dismissal places the municipality in a “very difficult situation,” Virikko adds.

2. Appeal to the Supreme Administrative Court
Municipalities may seek leave to appeal the administrative court’s ruling. Whether permission is granted depends on whether the case establishes new legal precedent. Virikko points to prior rulings on procedural errors in confidence assessments as potentially relevant but declines to comment on individual cases. If an appeal proceeds, the process could be lengthy.

3. Reassessment of confidence
A rare alternative involves the manager returning temporarily while the municipal council forms a new committee to reassess confidence, correct past procedural flaws, and potentially dismiss the manager again. In Savonlinna’s case, this is complicated by recent local elections: the new council has never worked with the dismissed manager. “How could the new council directly lose confidence?” Virikko questions.

4. Settlement agreement
The municipality and manager may negotiate a financial settlement, where the manager waives further legal action in exchange for compensation. This option is highly unusual but was recently used in Luumäki, where the former manager received €230,000 for wrongful dismissal.

Virikko emphasises that each case depends on its specific circumstances, and municipalities must weigh legal risks against practical governance challenges.